Railways sets up Directorate to generate Funds via Advertisements

New Delhi: n yet another move, albeit an incremental one, aimed at restructuring the railways board on functional lines, the national transporter has set up a new directorate to generate funds in a big way through advertisements and find the right players for commercial exploitation of its land.

This is not the first time the railways is trying to raise resources from non-tariff sources, but the setting up of the ‘non-fare revenue directorate’, which comes after a ‘mobility directorate’ was formed, indicates rail minister Suresh Prabhu’s strategy to slowly push structural reforms in the mammoth PSU.

Another directorate for environment and housekeeping is already functioning. The next step in Prabhu’s plan seems to be organising the national transporter on business lines by assigning functional roles to members of the board.

The signal and telecom department, which was till now under the Member (Electrical), has been placed under the member (engineering), who heads the civil engineering department.

“The move hints at a plan to create a new post of member (fixed infrastructure),” said an official, adding that the next step could be creation of the post of member (rolling stock) and member (traction) by merging electrical and mechanical departments .

The minister has initiated a slew of reform measures, but the “slow” pace has raised a few questions. However, a few see Prabhu’s gradual approach as a clever strategy to steer the reforms without annoying powerful employee’s unions .